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VAT do's and don'ts

When it comes to VAT, Jones Peters can advise businesses on some of the important steps to take – and the pitfalls to avoid. This article considers some important VAT Do’s and Don’ts.

DO keep a monthly record of your turnover - late registration can result in severe penalties

DO notify your local VAT office when major changes take place - changes must be notified within thirty days

DO retain records for the last six years - these could be demanded by law

DO charge VAT on supplies to your staff

DO charge VAT on any equipment or vehicles (except motor cars) that you sell or part-exchange

DO account for VAT on fuel used for private motoring using the appropriate flat rate valuation

DON'T claim the VAT paid on the purchase of a motor car - it is not recoverable except in some very special cases

DON'T claim the VAT paid on goods or services used for private purposes. Where there is an element of private use (e.g. telephone) an appropriate percentage should be claimed. Special arrangements apply to private use of petrol (see above)

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